Argonaut | The Natural Choice in Resources

Morning Notes

The S&P 500 gained 0.2% to 2736 on Friday, however steep losses from earlier in the week pushed the index to its first weekly loss for November, the Dow Jones added 0.5% to 25413; US Vice President, Mike Pence sharpened U.S. attacks on China during a week of summits which ended Sunday, most notably with a call for nations to avoid loans that would leave them indebted to Beijing; The European Union is unveiling the first bloc-wide rules to prevent foreign investments from threatening national security, as Chinese acquisitions foster political unease; Aluminium producers will need to build additional smelting capacity outside of China as inventories are expected to run down over the next 2-3 years, according to Rio Tinto Group; Oil companies including Chevron Corp. and Royal Dutch Shell Plc pledged more than $100 million to support private investment in the Permian Basin (Texas) and New Mexico as the region struggles with the effects of booming production.

Latest Research

After a long gestation period, GNG has been awarded a $366m EPC contract with Sheffield Resources (SFX) for the Thunderbird Mineral Sands Project in north-west WA. The project still requires financing and FID, but at this stage construction is expected to kick off in 2Q 2019. We have pulled back FY19 forecasts given some uncertainty over revenue timing, but note that if SFX goes ahead, slippage out of FY19 buffers FY20 and FY21. Our positive view is unchanged, and our retained $1.55 valuation reflects longer term value. BUY.

Latest News

Argonaut is pleased to announce the successful $12.5 million Initial Public Offering (“IPO”) on the ASX of Stealth Global Holdings Ltd (“Stealth” or “the Company”). Stealth is a fast-growing sales and distribution group supplying safety, industrial, workplace and healthcare consumable products and customised supply solutions to business customers across the resources, engineering, transport and general industrial sectors.